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The Future Remains Bright for Mackay, Gladstone and Townsville

Friday, September 13, 2013

There are currently many investors who purchased in regional areas of QLD and have been disappointed by having to accept lower than anticipated rental returns. Negative media about the end of the resources boom have also left these investors thinking that they have made a bad investment choice. However now is not the time to panic.

When you dig deeper into what is actually happening in these regions and look at the longer term the future prospects for cities like Gladstone, Mackay, Emerald, Rockhampton and Townsville remain incredibly strong. We may have passed the peak of the investment stage but we are yet to begin receiving the billions of dollars of income once exporting begins. And we still have some massive projects due to commence that will employ thousands of workers.

Please see the following link to an article from Terry Ryder suggesting that bright days are ahead;

http://m.propertyobserver.com.au/residential/rocky-on-the-rise-as-gladstone-stumbles-terry-ryder-hotspotting-rockhampton-gladstone/2013052261590

The short term over supply of rental properties in Gladstone and Mackay should be absorbed by early next year. It may take awhile for rents to get back to their peak levels but the potential for above average capital growth remains very strong. The Gladstone metropolitan area is fast running out of land that can be developed at an affordable price. Most future development will be around 20 minutes away in Boyne Island/ Tannum Sands or Calliope. While there is more land around Mackay capable of being developed you are no doubt aware of how long it takes for the Mackay council and local developers to bring the land to market. And most land left is either low lying or very hilly, meaning the cost to deliver lots is higher.

We are very confident is the medium to long term prospects for these regions an hope that investors can be patient. If they hang on happy days are ahead.

 

By: Chris Halpin

Who Said Mackay is Over!

Monday, September 09, 2013

 

The train is departing, All aboard!

The Daily Mercury yesterday announced the opening of a BHP Daunia mine and has created over 900 jobs while boosting the economy by $1.4 billion.

Relate this to another story they printed yesterday informing us of another airport upgrade which backs up the recent million dollar refurbishment.

"Mackay's perfectly positioned to be Central Queensland's integrated transport hub, so we're in the sweet spot for the Bowen Basin. Mackay is the capital of the Whitsundays so this is the place that people want to come through."

Now, combine all of this good press with the attached housing boom predicted from the election and we have the perfect storm for buyers to invest in Mackay.

See all three articles here:

  1. Airport Upgrade
  2. Daunia Mine Creates Over 900 Jobs
  3. Abbott will Trigger a Housing Boom

Specific Property Advice - Press Release

Friday, September 06, 2013

Here is a press article link about HNW Planning and an exciting initiative with direct property:

http://www.wealthprofessional.com.au/news/firm-delves-into-property-advice-178917.aspx .

It’s mostly but not entirely accurate. 

There will be education and professional membership standards required before you can start to provide Specific Property Advice. We will publish these details as soon as possible. We are trying to time the publishing of details, re-writing of Controlled Documents and other requirements to a second important initiative that’s being explored. 

Being able to offer Specific Property Advice may be a great way for you to increase your revenue. There are many clients who need specific property advice and there is no real source of that professional advice that is not otherwise limited in what that adviser can say or do OR who actually represent the vendor. Examples may include:

  • How to manage a property in old age (aged care) scenarios
  • Young couple seeking a strategy to enter the property market (buy big now or buy little and upgrade later)
  • Mature investors
  • Up-graders looking for strategies to minimise their personal debts when transacting on properties
  • SMSF property investors.

Significant Opportunities

With two thirds of wealth in property, opportunities are significant. 

And because you'll be able to advise on old and new property you’ll be able to strike up meaningful relationships with suburban real estate agents. 

Note that there are no exclusive arrangements as implied in the article but those mentioned in the article have been of great assistance to the process of gaining the new PI Insurance. 

Remember - Specific Advice can’t be done without training and professional membership. Details to follow as soon as possible. 

Kind regards,

 

David Hamblin

Operations Manager

 

HNW Planning Pty Ltd AFSL 225216

New Generation Seeks Property

Tuesday, August 27, 2013

The Global Financial Crisis (GFC) has spooked the younger generation into shaking off the party lifestyle and instead aspiring to own property to ensure financial stability, according to recently released research.

The Future Leaders Index is a groundbreaking research series lifting the lid on the views of over 2000 young, educated Australians.

The results point to the rise of 'Generation Sensible' or 'Gen S' - a demographic of 17-29 year-old university students that is both conservative and traditional, as well as being fiercely family-orientated.

Overall, it seems that the younger generation has changed priorities. Having been spooked by the GFC, they now want financial security - 94 per cent are saving to buy property rather than pursuing the party lifestyle, with only 5 per cent of their income spent on socialising.

 

Author: Property Week

Demand Continues to Outweigh Supply

Monday, August 19, 2013

Rental vacancies in South-East Queensland are being squeezed as demand continues to outweigh supply. The Real Estate Institute of Queensland (REIQ) says vacancy rates remain under 3% in SEQ and in most cases are tightening even further. Brisbane's vacancy rate is 2.1%, but rates are also trending lower in all other major regions of the south-east, REIQ's CEO Anton Kardash says. Cairns, Bundaberg and Fraser Coast regions all recorded vacancy rates below 3%. Kardash says competition for rental properties is attracting more investors, with property investor activity in Queensland up 14.9%, according to the REIQ's interpretation of ABS finance data.

Property Market continues its Upward Momentum

Monday, August 12, 2013

Australian house prices have continued to rally, with official data showing improvements in all capital cities. Prices for established houses in the eight capital cities rose 5.1% in the year to June, according to Australian Bureau of Statistics data. Prices rose 2.4% in the June Quarter itself.

The ABS price index for established houses shows that capital city indexes rose in Sydney (+2.7%), Melbourne (+2.4%), Perth (+3.4%), Brisbane (+1.9%), Canberra (+1.0%), Adelaide (+0.3%) and Darwin (+2.9%). Hobart showed a fall (-1.0%).The biggest annual increases were in Perth (+11.0%), Darwin (+7.7%) and Sydney (+6.1%).

Queensland Lures Property Investors like no other State

Friday, August 09, 2013

Terry Ryder, 30 July 2013
 

Queensland’s status among the economic growth leaders of Australia has slipped in recent years, but its standing in the eyes of property investors remains undiminished.

Western Australia and the Northern Territory lead the country on economic growth, with Queensland a distant third.

The ACT has the nation's lowest unemployment followed by WA, while Queensland, with the exception for the struggle state Tasmania, now has the worst. WA is way out in front on population growth, with ACT second alongside Queensland, with the Northern Territory and Victoria challenging.

But property investors are oblivious or simply don’t care. Queensland has long held a reputation as the place to buy and nothing so far has shaken that conviction.

Overall, Western Australia is the national leader these days based on economic indicators – and Perth is the leader for price and rental growth - but more investors are buying in Queensland than in WA, according to the loan figures from the Australian Bureau of Statistics.

In the 2013 financial year, Queensland was the star of my hotspotting business.

The Top 10 Queensland Hotspots report outsold all our other state/territory reports by a considerable margin. The next most popular state, WA, attracted only half as many customers as Queensland did.

Our Queensland report sold more than NSW, Victoria and South Australia combined.  

When it comes to individual location reports, Queensland again topped the poll. The top five locations for Hotspotting buyers throughout the 2013 financial year were all in Queensland: Gladstone, Surat Basin, Mackay, Townsville and Emerald.  

Nine of our 12 most popular locations were Queensland regional centres.  

And, no, it’s not because we are based in Queensland. Only 20% of our report buyers were Queensland-based in the financial year 2013. We get most of our buyers from NSW and Victoria.  

So why is Queensland so popular?  

I think, in part, it’s because Queensland has an enduring reputation as a centre of growth. It has a track record for rising population and economic prosperity going back decades and investors are taking the long-term view that this will remain so.  

It’s also because Queensland is the most decentralized state or territory in Australia. All other states/territories have the bulk of their populations in their capital cities.  

Queensland is different. The state has stronger, prosperous regional areas than anywhere else in the nation and many of those places have well-established records for growth.

While Brisbane and tourism icons like the Gold Coast, the Whitsundays and Cairns have struggled in recent years, regional centres like Toowoomba, Emerald, Mackay, Gladstone, Roma and the towns of the Western Downs region have all delivered good price growth.  

Queensland offers unique or near-unique features to investors.

Nowhere else in Australia has a Gold Coast (probably not a bad thing, because the Gold Coast is a poor performer on capital growth, with houses and units on average still worth less than five years ago).

Nowhere else in Australia has a Gladstone, the nation’s leading industrial city.

Few other states have a Toowoomba, an inland city with 140,000 residents, a diverse economy and a boom resources province (the Surat Basin) on its doorstep.

Few other states have a Mount Isa, a remote mining town which is also a regional centre of 20,000-plus residents.

Few other states have a Townsville, a regional city with the population, economic diversity and strength of a capital city.  

And, with the exception of WA, no other state has the resources sector oomph of Queensland – a factor that will continue long-term, despite current weakness in the coal sector.  


For these and other reasons, Queensland lures property investors like no other part of Australia. 
Terry Ryder is the founder of hotspotting.com.au 

Four Queensland Areas to Outperform Rest of General Property Market

Tuesday, August 06, 2013

 

QUEENSLAND has four of the top ten areas in Australia tipped to outperform the rest of the general property market.

The latest Top 10 Best Buys report by property analyst Terry Ryder of hotspotting.com.au, tips Emerald/Galilee Basin, Ipswich, the Sunshine Coast and Toowoomba as the markets to watch.

He said all four were considered to have the drivers which would achieve capital growth above the norm in the near future.

Mr Ryder said the Sunshine Coast market, which had struggled in recent years, was set to achieve some growth for the first time in five years.

"Having previously been hampered by a struggling tourism economy, an oversupply of dwellings and poor affordability, the coast is heading into a new growth phase,'' he said.

"We are actually seeing a number of markets which are tourism based such as Cairns, Hervey Bay, the Whitsundays and Sunshine Coast, are now starting to come back,'' he said.

The Sunshine Coast was being helped by multiple factors, the tourism industry was stronger, the market was more balanced in terms of supply and demand, and recent price drops had made it more affordable.

Fly in, fly out, workers were settling on the Sunshine Coast and most importantly there is major infrastructure being built there.

"Nothing generates property price growth like major new infrastructure, which generates jobs, economic activity and improved amenity for residents,'' he said.

"We believe the best part of the Sunshine Coast for investors to consider is the southern precinct from Kawana south to Caloundra.

"This is where most of the key new infrastructure is being built.''

Mr Ryder had highlighted the Sunshine Coat five years ago as a "no go zone'' an area not to invest in, but he said the fundamentals had now turned around.

Although the property market in Emerald and the Galilee Basin area were currently in temporary decline, Mr Ryder believed the amount of future infrastructure spending for the area as a result of the mining industry would soon turn that around.

"There is anything up to eight or nine big coal mining projects (for the area) proposed, you only need one or two of those to happen for Emerald to have a big lift,'' he said.

"There is going to be good buying opportunities now if you believe in the future of Emerald as we do.''

Ipswich was selected as it is considered one of the growth corridors of southeast Queensland and has experienced strong population growth, with about 5000 new residents added every year.

"Prices rose strongly in the five years to 2009 (before tapering of) giving the suburbs of Ipswich City the strongest capital growth averages in the Greater Brisbane region,'' he said.

"Big infrastructure developments include the $2.8 billion upgrade of the Ipswich Motorway and the $1.5 billion rail link to the Springfield master planned community,'' he said.

He said many suburbs were still very affordable in Ipswich with East Ipswich, including suburbs such as Booval, Eastern Heights and Silkstone, one of the most "under rated precincts'' in the area.

Toowoomba was identified in the report because it was one of Australia's strongest regional centres and it benefited from a diverse local economy and closeness to the Surat Basin resources province.

"We particularly like places like Toowoomba that get some benefit from the resources sector but don't depend on it,'' he said.

"Toowoomba has plenty of affordable investment options, a recent survey ranked the city the most affordable place in Queensland, relative to total incomes.''

National top ten best buys 2013-2014

Albury-Wodonga

Dubbo

Emerald/Galilee Basin

Ipswich

Kwinana precinct

Midland precinct

Palmerston

Rockingham

Sunshine Coast

Toowoomba

source: hotspotting.com.au


By Michelle Hele

Property has Historically Low Volatility

Friday, August 02, 2013

 

Housing prices are fundamentally less volatile than the share market.  This has been clearly demonstrated by the performance of the share market over the few years prior to 2010.  Many investors in the share market and investors in superannuation (who invests it in the share market) saw their investments and retirement funds drop by as much as 40 -50% over a mere few months. 

House prices can go up and down (as the graph below indicates) however they have never fallen by 40- 50% in a few months.  In fact the long term average of Australian property is around 10-11%.

 

 

 

The share market on the other hand has had a long term average (before the GFC) of around 9-10%.  It will be interesting to see whether this measure is still correct in a few years time when the long term effect of the GFC can be measured.

Suffice to say, and as demonstrated by the graph below, the property market is simply less volatile than the share market. A major reason for this is that property in Tangible, real ‘bricks and mortar’ and it fulfils the fundamental human need of a ‘roof over your head’ (see next chapter).

 

 

Exports Hit 3 Year High at Hay Point Coal Terminal

Friday, July 26, 2013

By Dominic Geiger

 

HAY Point Coal Terminal has recorded its highest export figure in more than three years as companies go into overdrive in an attempt to offset falling commodity prices.

More than 4.1 million tonnes of coal was pushed through the BHP Mitsubishi Alliance-owned terminal in June, a figure Queensland Resources Council chief executive Michael Roche said was testing the facility's capabilities.

"In the June quarter in Gladstone, Abbot Point, Hay Point and Dalrymple Bay ... all exports were up strongly on this time last year," Mr Roche said.

During the same period last year, Hay Point Coal Terminal exported just over 2.6 million tonnes of coal.

At full capacity it can churn through 6000 tonnes an hour.

Mr Roche said increased export volume showed companies were moving in the right direction to maintain profitability.

"Companies know the way to make money at the moment is through volume because they're not going to make money through fat prices," he said.

"So that's got to be good for confidence of the industry and good for the workforce."

According to the Reserve Bank of Australia, the commodity price index fell 10.5% during the past year, due mainly to declines in the prices of coking coal, iron ore, thermal coal and gold.

Mr Roche said the high export volume was evidence BMA had "got on top of its cost structure".

But he said not all companies were in the same situation.

"We have ... some mines that have got on top of their cost structures and ... established a profit margin," he said.

"There are other mines that are yet to establish that margin of profit ... and there are mines and parts of mines that may well not get into profitability in this current environment."

Hay Point Coal Terminal is owned by BHP Billiton Mitsubishi Alliance, while Dalrymple Bay Coal Terminal, also at Hay Point, is leased from the State Government by DBCT Management Pty Ltd.

http://www.dailymercury.com.au/news/exports-hit-3-year-high/1944416/


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